- I was overwhelmingly bullish on Century Communities last year as it appeared that the company would benefit tremendously from its entry-level focus during a spike in demand.
- Since then, the stock has risen dramatically as it saw record profits during the goldilocks environment.
- Unfortunately, homebuilder sentiment is at extreme highs while record property prices are causing many buyers to flee.
- In my view, high property prices will soon encourage a surge in existing home inventory from older Americans looking to downsize.
- Overall, the property market is due for a drop which could create losses for Century Communities due to its huge backlog.
For further details see:
Century Communities: Growing Demand-Supply Mismatch Is Bad News For Homebuilders